National Grid Corp. of the Philippines (NGCP) is seeking regulatory approval for the immediate implementation of transportation projects worth P20.3 billion.
Besides its responsibility for the planning, construction, central operation, and maintenance of high voltage transmission facilities, the NGCP is indispensable for ensuring reliable, high-performance operation of the transmission system.
Thus, to avoid operational disruption and to ensure continued compliance with NGCP’s mandate under EPIRA as a transmission operator, it is imperative that the proposed capital expenditure be implemented. [capital expenditure] said the network operator in its application to the Energy Regulatory Authority (ERC).
These projects are the Maco-Mati 138kV Transmission Line Project worth 3.61 billion pesos, the Calbayog-Allen Transmission Line Project worth 3.32 billion pesos, the Larai 230kV Substation Project worth 6.35 billion Pesos, the Benelli 230kV Substation Project worth 1.64 billion Pesos, San Project Simeon 230kV substation, 4.42 billion pesos, and Concepcion-Sta. Ignacia 69kV transmission line project worth 1 billion pesos.
The company said the projects aim to meet the growing demands of the industrial sector, address overloading of transmission lines, address expected demand growth, improve the reliability of power delivery, and provide a network connection point.
Last week, Synergy Grid and Development Philippines Inc. (SGP), the indirect controlling shareholder of NGCP, reported a 34 percent increase in operating services revenue for the nine months of the year due to a higher temporary maximum allowed revenue (iMAR).
In a regulatory filing, SGP said its operating services revenue amounted to 48.67 billion pesos at the end of September compared to 36.35 billion pesos in the same period last year.
“This is due to the higher iMAR2020 approved by the Energy Regulatory Authority, effective January 1, 2020 and the recognition of additional new iMAR 2020 for 2020 and 2021,” she said.
MAR indicates the maximum revenue that a network operator is allowed to earn from transmissions. For the year 2020, ERC has granted NGCP temporary relief for the implementation of iMAR2020 in the amount of 51,471,130,000 pesos.